|Key People||Per Sjöberg, TriOptima Group CEO|
|Products||portfolio reconciliation, portfolio compression|
TriOptima is a technology company providing OTC derivatives post trade risk management and infrastructure services such as portfolio compression and portfolio reconciliation for OTC derivatives market participants.
The firm, which is part of CME Group’s post trade risk management group, offers four main services:
- triReduce, a portfolio compression service, that reduces notional principal outstanding and line items for bilateral credit, interest rate and commodity derivatives and for cleared interest rate OTC derivative trades and FX forwards
- triResolve, a counterparty exposure management service that provides portfolio reconciliation, dispute resolution and margin management for OTC derivatives
- triBalance, a counterparty risk rebalancing serivce for those with multiple clearing relationships
- triCalculate, a risk analytics service that manages risk and meets regulatory standards by evaluating the risk elements (PFE, XVA and sensitivities) of OTC derivative transactions using state-of-the-art gaming technology.
The company is based in Stockholm and has offices in London, New York, Singapore and Tokyo.
TriOptima was founded in 2000 in Stockholm. triReduce, its portfolio compression service, was introduced in 2003 to eliminate outstanding notional principal of interest rate derivatives. Originally in USD and EUR, the portfolio compression service expanded to 25 other currencies and to CDS (credit default swaps) and commodity derivatives.
With the growth of clearing, TriOptima began offering compression services for cleared trades in clearinghouses like LCH SwapClear, SGX and JSCC resulting in significant reductions (over $640 trillion as of June 30, 2015) in outstanding notional principal. Relationships with CME, Eurex and other emerging clearinghouses are also in the works with participation expanding to buy side firms as well as dealers. TriOptima and CLS will offer compression for FX forwards.
In 2006, TriOptima introduced triResolve, its portfolio reconciliation and dispute resolution service for uncleared OTC derivatives. Changes in regulation in the US and Europe accelerated the growth of portfolio reconciliation and subscription to triResolve. The regulatory requirement for transaction reporting to swap data repositories
In 2015 TriOptima announced a collaboration between triResolve, AcadiaSoft and DTCC/EuroClear to deliver end-to-end margin processing.
Products and Services
TriOptima’s services are all centralized, web-based services that do not require any costly internal systems modifications or software installation. This enables quick and easy access to the services, and rapid delivery of results and reports after processing. All of TriOptima’s services assist market participants in risk analysis and reduction in OTC derivative portfolios, and facilitate compliance with new regulatory initiatives in the US (under Dodd Frank), Europe (under EMIR), and other jurisdictions that have adopted the BIS/IOSCO standards for risk management.
- triReduce is the multilateral, risk-constrained compression service that eliminates unnecessary line items and notional principal outstanding for both cleared and uncleared OTC derivatives in order to manage counterparty risk and achieve the Basel III liquidity requirements. Eliminating trades eliminates costs, credit and operational risk and reduces capital requirement.
triReduce continues to run multilateral compression for uncleared trades in 27 currencies around the globe, for commodity derivatives and for credit products including single name, indices and tranches. But compression of cleared trades in CCPs like LCH SwapClear, SGX and JSCC have dramatically reduced notional outstandings in the market.
TriOptima is also continuously expanding the range of its compression activities to new products and new market segments. New products include FX forwards (in cooperation with CLS), cross currency swaps and inflation swaps. New market segments include dealer and customer-cleared swaps in CCPs around the world. And new relationships with additional CCPS include CME, Eurex and others.
- triResolve offers a range of capabilities that enhance control over all aspects of OTC derivatives counterparty counterparty exposure management and margin call management. triResolve’s initial innovation, proactive portfolio reconciliation, has become the industry standard. Now, TriOptima has expanded its triResolve service to address other operational and credit risk challenges including validation and reconciliation of transaction data sent to swap data repositories in compliance with new regulations.
The industry leader for proactive portfolio reconciliation with over 1400 firms using the service, triResolve reconciles 75% of all bilateral OTC derivative trades globally. A web-based community network, triResolve brings together most market participants who reconcile their portfolios proactively, investigate and resolve disputes including valuation differences, and access sophisticated analytics to understand break patterns and work flow issues.
triResolve also offers repository reconciliation to assist in the identification and resolution of any problems of data discrepancies for data reported to swap data repositories as required by regulators. With authorized data feeds from registered trade repositories in the US and Europe, triResolve acts as a central hub to validate and reconcile repository data. The triResolve process identifies any discrepancies across trade repositories and gives users the tools to investigate and resolve differences.
In June 2015, thirteen major global banks, TriOptima, DTCC (Depository Trust & Clearing Corporation) and Euroclear announced a collaboration to provide open, seamless, end-to-end margin processing. This new service will link AcadiaSoft’s MarginSphere® electronic messaging service for OTC derivatives with triResolve’s trade reconciliation service and the Margin Transit Utility (MTU) to be operated by a DTCC-Euroclear GlobalCollateral joint venture.
- triCalculate, a centralized risk analytics service, provides a web-based service to price, report and validate transparent and consistent PFE and XVA risk calculations across a wide range of asset classes, data sources, and business units. Employing recent advances in state-of-the-art massively parallel computing devices, triCalculate uses numerical methods to accurately and efficiently produce results. triCalculate assists in complying with CVA accounting requirements and evolving regulatory capital standards like Basel III.
- triBalance, reduces systemic risk and credit risk exposure by simultaneously rebalancing counterparty risk exposures across multiple CCPs and bilateral counterparties. Strong pilot results demonstrate the ability to substantially reduce bilateral exposures by increasing offsetting exposures versus a CCP while maintaining an unchanged overall market risk position.
John Lothian News Interview
TriOptima’s Mireille Dyrberg Looks at the Latest FinTech Trends
For the past several years, derivatives conferences have been all about regulation. But as Dodd-Frank, MiFID II and other global regulations move through the rulemaking phase to implementation and beyond, the focus has shifted from regulation to innovation. Published July 7, 2015. 
Per Sjöberg of TriOptima Discusses the Changing Regulatory Environment & Portfolio Reconciliation & Compression
The ongoing regulatory overhaul is forcing more firms to find ways to reduce risk and improve capital efficiencies. TriOptima has been working with firms on both issues using its triResolve service for portfolio reconciliation and triReduce services, for portfolio compression. The firm’s services have helped terminate over $110 trillion total notional volume in interest rate swaps since 2008. Per Sjöberg spoke recently with JLN’s Jim Kharouf about the changing landscape. Published June 12, 2012.
- TriOptima Launches triCalculate IM Analytics Tool for Initial Margin Compliance. CME Group.
- CME’s TriOptima launches initial margin calculation tool. The Trade News.
- Mireille Dyrberg Looks at the Latest FinTech Trends. John Lothian News.
- Per Sjöberg of TriOptima Discusses the Changing Regulatory Environment & Portfolio Reconciliation & Compression. John Lothian News.